Seeking clarification of allowable deductions for Northern Residents travel.

[Jpenney74]

Hello,

I am hoping someone in the community can help me with something.  

• 2023 tax year
• On my T4 I have an amount indicated in Box 32 for travel in a prescribed zone.
• I do not have an amount indicated in box 33 for medical travel in a prescribed zone.
• I claimed 2 "other" trips for each family member.
• I claimed 3 medical trips for my wife.

CRA reviewed my return and deemed that the claim for medical trips was to be disallowed due to no amount indicated in Box 33.  I have previously claimed medical trips with no issue based on the amount that was included in Box 32.

Did the rules on deductions for Norther Residents change recently?  

[TurboTaxSusan]

No, you don’t need an amount in Box 33 on your T4. You can use a portion of the individual's $1,200 standard amount.

On the T2222 - Northern Residents Deductions form, Step B, Chart B uses the lowest of amount from column 3, 4, or 5 for each person/trip to determine the amounts used in the total. Column 3 needs to be either your travel benefit (box 33 if it’s for a medical trip), or the portion of the individual's $1,200 standard amount for the trip. So, if you don’t have anything in Box 33 on your T4, then you need to use a portion of your $1,200 standard amount. If you have already used up all of the $1,200 on other trips, then column 3 will be zero, which will be chosen for the total.

[Jpenney74]

Thanks for the reply.  Not quite sure that answers my question though.

I have an amount in Box 32 that exceeds the 1200 so I have never used that for making my claim.   I used a portion of the amount in box 32 when claiming for my personal trips and medical trips.

CRA reviewed my claim and disallowed the deductions for the medical trips. The personal trips were fine.

I was reviewed in 2016 and the method I have always used was acceptable.  But now they are saying that without an amount in box 33 I can't claim anything for medical travel. 

Did the rules for Northern Residents deductions change recently?